Amid deteriorating trust in the official currency, small businesses in Bolivia are increasingly turning to cryptocurrency as a means of payment.
Rise in Cryptocurrency Adoption
Small businesses in Bolivia are increasingly adopting cryptocurrency. According to a Reuters report, restaurants, beauty salons, and various small businesses have begun accepting crypto payments. In the first half of 2025, the volume of crypto transactions increased by 530% year-on-year, rising from $46.5 million to $294 million.
Financial Crisis in Bolivia
The country is experiencing a major financial crisis. On the black market, Bolivia's currency has lost more than half its value, and the central bank has exhausted its dollar reserves. Fuel shortages and historic inflation levels make cryptocurrencies, such as Bitcoin and stablecoins like Tether, appear more stable compared to the national currency. According to Jose Gabriel Espinoza, former head of Bolivia’s central bank, USDT volumes could be as high as $600,000 daily.
Comparison with Other Countries
Bolivia is not alone; countries like Turkey and Lebanon have also seen waves of cryptocurrency adoption due to inflation fears. In 2023, soaring inflation rates in Turkey prompted citizens to seek stability in crypto, while the situation in Lebanon was similar. In Latin America, similar patterns are evident in Argentina, which faced over 100% inflation and saw widespread use of crypto for everyday payments.
The adoption of cryptocurrency by small businesses in Bolivia is part of a broader global trend where high inflation rates force countries to seek alternatives to traditional currencies. This process highlights the growing significance of cryptocurrencies as stable assets in times of economic turmoil.
